Walk the line - underpaying workers may soon land you in jail

Over the last few years some businesses have made it really easy
for the Fair Work Ombudsman to prosecute them over systemic
underpayment of workers. There was much publicity concerning
7-Eleven franchisees, but demonstrably the problem was more
widespread.

Beyond just a few businesses doing the wrong thing, the problem
has been far more widespread. A review of the matters before Courts
show many of those who have been short changed are vulnerable
workers i.e. young and temporary migrants who have work rights
under international student and working holiday maker (backpacker)
visas.

In response to the revelation of such widespread underpayments
in certain industry sectors, the federal governments Migrant
Workers' Taskforce was tasked with examining the laws, enforcement
and penalties associated with the exploitation of such workers.

Last week the Taskforce dropped its final report and there are
some very serious recommendations.

It is recommended that for the most serious forms of
exploitative conduct, such as where that conduct is clear,
deliberate and systemic, criminal sanctions be introduced in the
most appropriate legislative vehicle. That's right, you
would go to jail.

Other recommendations include:

The Government give the courts specific power to make
additional enforcement orders, including adverse publicity orders
and banning orders.

It is recommended that legislation be amended to prohibit
persons from advertising jobs with pay rates that would breach the
Fair Work Act 2009.

The general level of penalties for breaches of wage
exploitation related provisions in the Fair Work Act 2009
be increased to be more in line with those applicable in other
business laws, especially consumer laws.

Deliberately underpaying workers is a completely unfair attempt
to uncompetitively gouge profit from illegal activity. Those
businesses doing the right thing won't have a worry, but if you
have any questions contact the Workforce Guardian team.